Your credit score impacts every aspect of your life, including some you may not be aware of. You already know that a poor credit score will boost the interest rate on your car loan, but having bad credit could increase your auto insurance premiums as well.

With so much on the line, it is vital to keep your credit score in good repair. If your credit has been damaged, fast action can help you mitigate the damage, so you can start to rebuild your finances and reclaim your good name. Best of all, you do not have to pay a credit repair company to do the work.

Here, Underground Elephant, a company dedicated to taking the mystery out of car insurance by offering tips and tricks for lowering your car insurance payment and providing a personal quote comparison tool from the nation’s top providers, reveals some simple things you can do to rebuild your damaged credit fast.

 Apply for a Secured Credit Card

A secured credit card looks the same as a regular one, but it works a bit differently. Since the secured card is tied to a bank account, you cannot overspend or exceed your limit. Best of all, payments to a secured card can help you rebuild your damaged credit.

Since the issuer assumes virtually no risk when issuing a secured credit card, these cards are easy to get, even if your credit is less than perfect. A secured credit card is also a good entry point into the world of credit – think of it as training wheels for building a good credit score.

Become an Authorized User on Someone Else’s Card

If you do not want to get your own credit card, you can boost your score by becoming an authorized user on someone else’s. Becoming an authorized user on a parent’s credit card, for instance, can help young people build credit – or repair a damaged credit score.

You may need to convince the other party to sign you up since any missteps on your part will reflect poorly on their own credit score. You will also want to closely oversee your spending when using the card to make sure there are no issues.

Pay Down Your Debt

The amount of credit you are using plays a significant role in determining your credit, so paying down debt is one of the fastest ways to improve your standing. Paying down your debt will also reduce the burden of interest payments and help you save more money.

It is not easy to pay down those credit card balances, especially when interest charges keep accumulating. Focusing on the cards with the highest interest rates will give you the most bang for your buck, and you can work your way down from there.

If you are a student, consider applying for scholarships such as the Underground Elephant scholarship, which offers $1,000 to a student who is a safe driver and is working to make a difference in their community.

Keep Your Old Accounts Open

Even if you are no longer using them, resist the urge to close those old credit card accounts. Longevity is an important factor in determining your credit score, and closing longstanding accounts could have a negative impact.

You do not have to use those old credit cards, or even keep them in your possession. There is no law against cutting up old credit cards while keeping the accounts open.

Your credit score is an important part of your financial life, one that should not be underestimated or dismissed. If your credit score is lower than it should be, it is time to take action, starting with the simple strategies outlined above.

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